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Local News

Saturday, November 21, 2009

Ohio AG sues credit agencies
New Auto Show Feb. 12-14 -Findlay Village Mall
By STEPHEN MAJORS

Associated Press Writer

COLUMBUS -- The three major credit ratings agencies gave mortgage-backed securities unjustifiably high ratings in return for lucrative fees, losing at least $457 million for five Ohio public employee pension and retirement funds, the state's attorney general alleged in a lawsuit filed Friday.

Ohio is the second state whose public pension funds have pursued credit rating agencies, after the California Public Employees' Retirement System sued the agencies in July alleging they caused it more than $1 billion in losses.

Ohio Attorney General Richard Cordray said Friday evidence showed that Moody's Investors Service, Fitch Ratings, and Standard & Poor's knew that mortgage-backed securities -- in which mortgages were sliced and packaged into securities for investors -- were much riskier than the top ratings they gave them.

But because those seeking the specific rating could shop around until they received that rating, rating agencies had a significant financial incentive to give the highest rating so they wouldn't lose market share, Cordray said.

As the housing market tumbled, shrinking home values and foreclosures triggered a meltdown in the mortgage-backed securities that spread to investors around the globe.

"The credit rating agencies sold out, and they sold us out," Cordray said. "They traded in their objectivity, and in exchange received massive profits. As a result, Ohio police officers, firefighters, teachers, government workers, investors, and retirees of all stripes suffered terrible losses."

Standard & Poor's, which is owned by McGraw-Hill Cos., said a recent Securities and Exchange Commission review of the credit agencies' business practices found no evidence it was issuing ratings for any financial gain. The report, however, found that significant aspects of the agencies' ratings process were not always disclosed, and none of the agencies had specific written policies for rating mortgage-backed securities.

"We believe the (Ohio) claim has no legal or factual merit and we intend to defend ourselves vigorously against it," said Steven Weiss, vice president of corporate communications for McGraw-Hill.

Moody's also said Cordray's lawsuit had no merit.

"Our ratings were and continue to be based on clearly defined and publicly disclosed methodologies," said spokesman Mike Adler. "It's unfortunate that the attorney general, rather than engaging in an objective review and constructive dialogue regarding credit ratings, appears to be seeking new scapegoats for investment losses incurred during an unprecedented global market disruption."

A message seeking comment was left with Fitch Ratings.

Cordray campaigned on a pledge to pursue action against Wall Street when he was running for attorney general last year. He is also heading up a large class-action lawsuit filed in September that claimed Bank of America executives improperly concealed billions in losses and bonuses paid by Merrill Lynch before a shareholder vote on their proposed merger, leading to possibly billions in losses for the state's two largest public pension funds.

Cordray alleged the agencies' artificially high ratings cost the Ohio Police and Fire Pension Fund $83 million; the Ohio Public Employees Retirement System $222 million; the State Teachers Retirement System $85 million; School Employees Retirement System $48 million; and Public Employees Deferred Compensation Program $19 million.


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Kyle wrote in article "Officials say stuck cars may be towed":
To Tim
“ It's a very good possibility that a plow with it's blade up was not a City of Findlay plow. Many people have their own plows and... ” Read More...
2/9/2010 1:17:57 PM
SNOW REMOVAL wrote in article "Officials say stuck cars may be towed":
SNOW REMOVAL
“ IF YOU ARE LOOKING FOR AFFORDABLE SNOW REMOVAL CALL MIKE (419) 236-9474...NO NEED TO PICK UP A SHOVEL OR CRANK UP THE SNOWBLOWER... ” Read More...
2/9/2010 12:42:55 PM
HLB wrote in article "Officials say stuck cars may be towed":
That's really sad...
“ You know, people are rude enough most of the time in this city and this last storm when random folks pulled together and I saw t... ” Read More...
2/9/2010 12:32:18 PM
rob wrote in article "Officials say stuck cars may be towed":
pile of snow
“ I cannot believe someone would call up and complain that a pile of snnow was blocking their view. What is this world coming to.... ” Read More...
2/9/2010 11:38:49 AM
tim wrote in article "Officials say stuck cars may be towed":
put the blades down this time
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2/9/2010 10:39:25 AM
Jimbo wrote in article "Sheriff reminds motorists of road level advisories":
To Debbie..
“ I want to express that I understand where you are going with your post, but be practical. If a level 3 is called, that means no... ” Read More...
2/9/2010 10:35:28 AM
Steve wrote in article "Blowing snow stalls traffic":
unknown
“ That would be a personal responsibility choice. We all know what the winter situation is in NW Ohio and we all should be prepar... ” Read More...
2/9/2010 9:56:48 AM
J wrote in article "Sheriff reminds motorists of road level advisories":
Citizen........
“ Findlay is located in Hancock County..... Therefore, yes. If Hancock Co goes into a level 3 that includes Findlay.... ” Read More...
2/9/2010 9:17:27 AM
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2/9/2010 9:04:12 AM
STEVE wrote in article "Sheriff reminds motorists of road level advisories":
LEVEL 3
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2/9/2010 8:55:52 AM
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News Briefs D.C. trip delayed
A trip to Washington, D.C. that Findlay and Ottawa officials were planning to make this week has been postponed because of the inclement weather.

Findlay Mayor Pete Sehnert said officials have rescheduled the trip for Feb. 23 to meet with a lobbying group and congressional representatives regarding federal spending on flood control projects.

Fostoria requires clearing sidewalks
FOSTORIA -- Fostoria residents are responsible for removing snow and ice from sidewalks within 12 hours of a storm, according to police Capt. Patrick Brooks.

The city code covers residential owners or tenants, and business owners of properties which abut a sidewalk.

An offense is a minor misdemeanor, with a fine of up to $100. Each day constitutes a separate offense.

Library in Forest reschedules event
FOREST -- Because of the expected inclement weather, the Forest-Jackson Public Library has rescheduled its Valentine luncheon planned for Thursday to 11:30 a.m. Thursday, Feb. 18.

Reservations are required. Anyone with questions can call the library at 419-273-2400.

Disc golf tourney set for Saturday
The Ray Heverling Charity Ice Bowl Tournament has been rescheduled for 1 p.m. Saturday at Riverbend Recreation Area, off Ohio 568 east of Findlay.

Registration begins at noon.

The tournament was canceled last Saturday because of a snowstorm.

The Disc Golf Community Association, in cooperation with the Hancock Park District, sponsors the event. Proceeds go to the Family Center of Findlay-Hancock County.

For more information contact Nathan Buck at p_nate@thecatalystcc.com or 419-306-7405. Entry fee is $20. Additional donations are accepted.

Housing Authority meeting postponed
Because of an expected winter storm this week, the Hancock Metropolitan Housing Authority has canceled its regular board meeting scheduled for Thursday. It will be held at 8 a.m. Thursday, Feb. 18 at the Family Center.

Fostoria library to close Monday
FOSTORIA -- Kaubisch Memorial Public Library will be closed Monday, Feb. 15, in observance of Presidents Day.

Crime Of The Week
Findlay/Hancock County Crime Stoppers is looking for information about a break-in at the Arlington Pharmacy, 200 Main St., at 12:51 a.m. Dec. 28.

A glass pane in the front door of the business was shattered, and entry was made. Once inside, the perpetrators took prescription medications and fled on foot.

Two white males were seen running from the business. The males were possibly in their late teens to early 20s, and possibly entered a vehicle.

People with information about this or any other crime that would lead to an arrest or indictment will be eligible for a cash reward of up to $1,000.

Crime Stoppers can be called weekdays from 8 a.m. to 4 p.m. at 419-425-TIPS or 419-425-8477. Callers can remain anonymous.

The Web site is www.hancockcrimestoppers.org.